Question

What is the reason of the lost of money in face before french revolution?

Answer 1

French Revolution began in the 1780s, the reason for the loss of money before this revolution was :

• LouisXVI became the king of France in 1774 during the ongoing American Revolution.

• America was struggling for freedom from the British.

• America requested France to help them in getting rid off British.

• Then Louis XVI helped America by investing many billions in American Revolution.

• This resulted in the loss of money and depression occurred in France.

• This led to increasing the taxes and dividing France into estates.

• This was one of the major causes of the French Revolution.

Answer 2

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$\bullet$The extraordinary privileges were only enjoyed by the first and second estate who were the noble and the clergy. Therefore, there was a serious annual deficit of the pre-revolutionary government of France.

$\bullet$The financial burden crushed the third estate. They paid several taxes and also paid additional tax to the Church and taxes to the local nobles. In such disparity in levying taxes, France became a 'Museum of Economic Errors'

$\bullet$Throughout the 17th-18th centuries, French government had been under a serious annual deficit. The chief weakness of the government of the revolutionary France was the faulty finance. Owing to the faulty finance of collection of taxes, they were enjoyed by the privileged classes. It was unable to meet the deficit nor was it possible to increase the already high tax burden.